6G·

Hidden champions?

Over the weekend, I ran my stocks and my watchlist through a quality check once again. The AI was designed to evaluate companies based on 10 metrics (1–10 points per metric / max 100 points): moat, margins, EPS CAGR, balance sheet quality, TAM, future prospects, resilience, innovation, and management.

I found it particularly interesting how high up $MIPS (+14,1%) and $LAES (-0,57%) ranked. The business model of $MIPS (+14,1%) sounds rather boring and seems unremarkable, but the numbers are impressive. $LAES (-0,57%) At first glance, it looks like just another AI gimmick, but under the hood, it doesn’t look half bad. Is anyone here keeping an eye on these companies?

$MIPS (+14,1%)

Positives:

-MIPS has one of the purest IP moats in the entire small- and mid-cap universe

-A 70–75% gross margin for a physical product?

-EPS CAGR >25% and economies of scale

-MIPS management is the only one among the 40 companies to receive an 11/10 score from the AI

Negatives:

-TAM only 7 points because the safety TAM is limited

$LAES (-0,57%)

Positive:

-SEALSQ has a net cash position, which is is absurdly high

-SEALSQ is not a typical semiconductor player. It operates in a niche with extremely high barriers to entry

-PQC (post-quantum cryptography) is a regulatory S-curve

-asset-light security semiconductor (no factories, no millions/billions in CapEx)

Negative:

-EPS not yet fully scaling

Balance Sheet $LAES (-0,57%)

11 Commenti

Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

With a score of 11/10, your AI seems to be particularly thrilled. 😅😉

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Dirty30@Dirty30

@Get_Rich_or_Die_Tryin Or she's really messing with me 🤣

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

@Dirty30 To be honest, that was my first thought, but I was hoping you'd made a typo.😂

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Dirty30@Dirty30

@Get_Rich_or_Die_Tryin I pointed this out to the AI, and it immediately apologized for its emotional response 😂 Why it still received 10 points: Capital allocation:

No pointless acquisitions

No dilutive sprees

Focus on core IP, not on “storytelling”

Scaling:

Revenue grows → margins remain high

No “growth at any cost” mistakes

Pricing Power:

MIPS doesn’t lower prices to drive volume

Helmet manufacturers accept premium pricing because safety sells

Communication & Execution:

Guidance is set conservatively rather than aggressively

No drastic strategy shifts

Risk Profile:

No bets on new, unclear markets

Focus on a clear, defensible core

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PikaPika0105@PikaPika0105

$LAES is one of the cheapest Quantum Stocks out there. Most others are overvalued, with them it’s the opposite.

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jkb92@jkb92

@PikaPika0105 good for us :)

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Chris@Multibagger

@PikaPika0105 I've made a good investment, by my standards. As a Japan expert, what do you think of my new purchase, $5332? I know it seems a bit boring at first glance, given my expectations.

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PikaPika0105@PikaPika0105

@Multibagger Did you buy *Chip Story*? It's been the talk of the town lately, partly because of that funny transition from toilets to AI. I'm sure there's still some potential there… But it's not for me right now, and it's not available where I am either.

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Chris@Multibagger

@PikaPika0105 I thought that was an interesting twist. Kind of like miners working in data centers. I bought a few of them. Even the toilets are really high-tech.

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Raketentoni@Raketentoni

Hey @Dirty30,

Cool watchlist! I just took a quick look at these two stocks and compared them with the latest annual reports (as of mid-2026). Your AI has unearthed some real gems here, but when it comes to a few metrics, we need to take off our rose-colored glasses for a moment and set the record straight 😉

Regarding MIPS:

The 70–75% gross margin is absolutely correct (73.4% in 2025 and 71.1% in Q1 2026). But this isn’t really a classic “physical product”—it’s an extremely clever IP licensing model. They’re getting paid very well by helmet manufacturers for the use of their technology.
Be careful with the EPS CAGR of >25%! That’s a fallacy on the AI’s part. Mips suffered a massive operational slump in 2023.
In 2021, profit was still at 255 million SEK; by 2025, it had dropped to just 120 million SEK. Although they’re now growing strongly again (+30% revenue and +53% EPS in Q1 2026), historically speaking, this isn’t currently a clean 25% compounder, but rather a turnaround following a crisis.

Regarding the Safety TAM: It’s not that limited anymore. They acquired Koroyd in December 2025 and posted enormous growth of 135% in the Safety division in Q1 2026.

Regarding LAES (SEALSQ):

You’re absolutely right—the niche (post-quantum cryptography) is technologically extremely exciting, and the barriers to entry are high. The cash position is actually absurd: They had $425 million in cash at the end of 2025!
That’s completely crazy for a company of this size.

BUT your criticism that “EPS isn’t fully scaling yet” is the understatement of the year 😅. The company generated $18 million in revenue for the full year 2025, but posted a massive net loss of between $30 million and $40 million. This isn’t just a minor scaling issue—it’s a brutal cash burn.
They also urgently need the generous cash reserves to keep operations running until the PQC S-curve really takes off.

Conclusion:

MIPS is a highly profitable IP play that’s regaining momentum after a severe dip. LAES is a highly speculative bet on the future of PQC with an extremely limited war chest, but it’s currently bleeding massive amounts of cash from operations.
Both are exciting, but I wouldn’t blindly rely on the AI score here! ✌️

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Dirty30@Dirty30

@Raketentoni Thanks for your take on this. I have to admit I still have a few lingering doubts about this technology 😁. We'll definitely have to keep an eye on the cash burn.

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